Solaredge Outlook - Technical Strength and Cautious Optimism Amid Mixed Analyst Sentiment

Market Snapshot

Takeaway: Solaredge (SEDG) is showing strong technical signals, with an internal diagnostic score of 7.38, while fundamentals and analyst ratings remain mixed. The stock has fallen by 14.34% recently, but technical indicators suggest a cautious optimism.

News Highlights

Recent news affecting the semiconductor sector includes:

• McKinsey on US Tariffs and Semiconductor Supply Chains: New research from McKinsey explores the impact of US tariffs on semiconductor manufacturing, with potential implications for global chip producers like Solaredge.
• Japan-US Cooperation on Rare Earths and Semiconductors: Japan plans to propose enhanced cooperation with the US in rare earth and semiconductor supply chains, potentially reducing dependency on China and benefiting companies with global exposure.
• $750M ETF Outflow in May: The US Semiconductors ETF (SOXX) faced a significant net outflow of $750 million in May 2025, indicating investor caution in the sector, which may affect Solaredge’s market sentiment.

Analyst Views & Fundamentals

Solaredge’s analyst consensus is mixed, with two firms—Goldman Sachs and Guggenheim—offering recent ratings. The simple average rating is 2.00, and the performance-weighted rating is 1.48. This suggests a generally pessimistic outlook, with the price falling in line with these expectations.

Key fundamental values and their internal diagnostic scores include:

• Net cash flow from operating activities per share (YoY growth rate): 109.57% with a score of 7.39.
• Net profit attributable to parent company shareholders / Net profit: 100.00% with a score of 7.53.
• EV/EBIT: -9.68 with a score of 6.37.
• Cost of sales ratio: 90.24% with a score of 6.94.
• Net cash flow from operating activities (YoY growth rate): 109.94% with a score of 7.36.
• Interest coverage ratio (EBIT / Interest expense): -89.59% with a score of 7.24.
• Total assets turnover ratio: 19.81% with a score of 6.60.

Fundamentally, Solaredge shows strong cash flow and operating growth, but profitability and debt indicators are more mixed. Analysts appear to be cautious, with only a 50% historical win rate from Guggenheim and a 40% from Goldman Sachs.

Money-Flow Trends

Solaredge is attracting positive institutional and retail inflows. The overall inflow ratio is 0.508, with positive trends observed across all retail and large institutional flows. Specifically:

• Small investor trend: 0.505 (positive)
• Medium investor trend: 0.500 (positive)
• Extra-large institutional trend: 0.513 (positive)

This suggests that investors, from retail to large institutions, are building long positions, which is a bullish signal for near-term momentum.

Key Technical Signals

Solaredge’s technical outlook is bullish, with 3 bullish indicators and no bearish ones in the last 5 days. The internal diagnostic score is 7.38, reflecting strong momentum and cautious optimism.

Key indicators and their internal diagnostic scores (0-10) include:

• Long Lower Shadow: 7.73 – strong bullish signal
• Long Upper Shadow: 7.67 – strong bullish signal
• WR Oversold: 7.28 – bullish bias
• MACD Death Cross: 6.83 – strong bullish signal

Recent chart patterns include multiple instances of WR Oversold (on 9/10, 9/11, and 9/12) and a MACD Death Cross (9/9), indicating volatility but also buying interest from traders exploiting oversold conditions.

Conclusion

Solaredge shows strong technical momentum and positive money flows, but analyst sentiment and fundamental performance are more mixed. While the technicals suggest a bullish case, the recent price drop and cautious analyst ratings warrant a measured approach.

Actionable takeaway: Consider monitoring Solaredge’s near-term performance for a potential pull-back or breakout. A positive close above its recent upper shadow could confirm a stronger bullish trend.